Total human capital costs can account for as much as 70% of operating expenses in organizations, including companies in the Fortune 500. To get the most out of this investment, organizations need to align their talent to business objectives.
How do they accomplish this? By examining the business strategy, identifying its demands and implications for talent, and then designing a talent strategy to meet those needs.
Research consistently shows that when an organization gets the right people with the right skills focused on the right initiatives, the benefits are seen across the board: higher morale, productivity, innovation and financial performance. In fact, a talent strategy designed around business objectives produces stronger outcomes than simply adopting best HR practices.
Certainly talent management should be integrated into a coherent system. But even more important, it needs to be leveled at goals that drive the business strategy—specifically, finding, nurturing, and rewarding the talent that provides distinct competitive advantage.